Wt Microelectronics Co., Ltd. · TWSE:3036

Wt Microelectronics — Q2 2018 Earnings Presentation

20 slides from Wt Microelectronics's earnings presentation, Aug 8, 2018

  1. Slide 1: 2018 Second Quarter Investor Conference

    2018 Second Quarter Investor Conference Presented by Cheryl Yang August 8, 2018

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement  WT’s forward-looking statements, which may include statements regarding its results of operations, financial condition or business prospects, are subject to significant risks and uncertainties and are based on WT’s current expectations.  Actual results may differ materially

  3. Slide 3: Agenda

    Agenda 1. Overview 2. Financial Update 3. Business Outlook 4. Recap of Recent Major Events 5. Questions and Answers 3

  4. Slide 4: 1. Overview

    1. Overview Strong secular growth with economies of scale  A leading Asian semiconductor distributor, founded in 1993 and listed in 2000 (ticker: 3036 TT)  Strategic focus on Asia region and Automotive & Internet of Things (IoT) applications  2017 revenues of NT$189bn, up 31% YoY  45 offices in

  5. Slide 5: Offices Across Asia

    1. Overview China Offices (30) Korea Office (1) Harbin Shenyang Dalian Offices Across Asia Seoul Beijing Qingdao Taiwan Offices (4) Zhengzhou Taipei, Headquarters Jinan Xian Hsinchu, R&D Ningbo Shanghai Taichung Wuxi Tainan Suzhou Kunshan South Asia Offices (10) Nanjing Hangzhou Wenzhou New Delhi, N

  6. Slide 6: Net Revenue 2000-2017

    1. Overview NR (Net Revenue) YoY=31% NT$B YoY=27% 200 189 180 CAGR(2011~2015)=12% 160 144 CAGR(2006~2010)=16% 140 120 114 108 100 88 80 80 71 64 60 47 39 41 40 30 34 21 20 10 14 5 9 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 6

  7. Slide 7: 2Q18 result highlights

    2. Financial Update 2Q18 result highlights  Net revenue in line with guidance, up 7% QoQ and 31% YoY  Gross margin and operating profit margin outperformed guidance  Net profit up 7% QoQ and 14% YoY 7

  8. Slide 8: Statement of Comprehensive Income (2Q18)

    2. Financial Update Statement of Comprehensive Income Unit: NT$M 2Q18 2Q18 1Q18 2Q17 Key accounts QoQ YoY Amount % Guidance Amount % Amount % Net Operating revenues 53,248 100.00% 51B~55B 49,635 100.00% 7.28% 40,364 100.00% 31.92% Gross profit 2,560 4.81% 4.5%~4.7% 2,288 4.61% +0.2ppt 1,924 4.77% +0

  9. Slide 9: Statement of Comprehensive Income (1H18)

    2. Financial Update Statement of Comprehensive Income Unit: NT$M 1H18 2H17 1H17 Key accounts HoH YoY Amount % Amount % Amount % Net Operating revenues 102,883 100.00% 110,677 100.00% -7.04% 78,742 100.00% 30.66% Gross profit 4,848 4.71% 4,701 4.25% +0.46ppt 3,721 4.73% -0.02ppt Operating expenses (2

  10. Slide 10: Balance Sheet

    2. Financial Update Balance Sheet Unit: NT$M 2Q18 1Q18 2Q17 Key accounts Amount % Amount % Amount % Cash and cash equivalents 2,283 3 2,542 3 2,178 4 Accounts receivable 35,865 43 31,765 41 24,001 42 Inventory 38,500 46 35,426 46 25,441 44 Other current assets 2,321 2 2,929 4 1,684 3 Non-current ass

  11. Slide 11: NR by Geography (Ship-to Destination)

    2. Financial Update NR by Geography (Ship-to Destination) 0.7% 0.4% 0.6% 0.5% 0.6% 0.5% 0.7% 0.5% 60 100% 1.7% 1.5% 2.3% 2.2% 2.0% 1.8% 2.6% 1Q18 3.4% 50 QoQ +7% 7.0% 5.7% 5.9% (Left) Revenue (NT$B) 10.5% 8.1% 8.1% 8.5% 6.1% 6.4% 6.0% vs. 8.1% 7.9% 40 7.2% 9.2% 8.5% 7.1% 2Q18 80% (Right) 30 20 QoQ +

  12. Slide 12: NR by Customer Base

    2. Financial Update NR by Customer Base QoQ +2% 100% 1.7% 1.6% 1.7% 30 2.0% 2.2% 2.0% 2.8% 3.3% 1Q18 7.8% 8.6% 8.8% 6.4% 6.3% 11.2% 9.3% 6.6% 25 (Left) QoQ +13% vs. Revenue (NT$B) 20 2Q18 80% (Right) 30.4% 34.1% 15 33.1% 34.7% 36.5% 36.6% 35.7% 38.5% 10 QoQ +12% 60% 5 QoQ +26% 0 Taiwan China Korea A

  13. Slide 13: NR by Application

    2. Financial Update NR by Application 20 QoQ -5% 100% 1Q18 2.9% 3.0% 3.7% 4.0% 4.2% 3.4% 3.9% 4.3% 18 (Left) 6.2% 16 Revenue (NT$B) 6.9% 7.2% 7.8% 6.6% 6.4% 7.3% 7.5% QoQ +14% 14 vs. QoQ +15% 2Q18 12.8% 10.9% 11.4% 12 13.4% 14.9% 13.8% 13.5% 14.0% 10 QoQ +11% (Right) 80% 8 15.5% 6 QoQ +10% 17.1% 17.

  14. Slide 14: ROE vs. EPS

    2. Financial Update ROE vs. EPS EPS 6.00 ROE% 18.82% 20% 16.03% 5.00 14.05% 15.28% 15% 13.42% 4.00 12.88% 12.01% 11.56% 12.38% 10.67% 9.55% 3.00 10% 2.00 5% 1.00 4.69% 0.00 0% 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 ITEM 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

  15. Slide 15: ROWC vs. NWC/Sales

    2. Financial Update ROWC vs. NWC/Sales 0.30 NWC/Sales 25% ROWC 0.25 20% 0.20 14.83% 15% 0.15 12.04% 8.81% 9.04% 10.91% 10.57% 9.76% 8.72% 11.64% 11.66% 10% 0.10 9.26% 5% 0.05 4.54% 0.00 0% 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 ITEM 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4

  16. Slide 16: Operating Cash Cycle

    2. Financial Update Operating Cash Cycle AR INV AP Operating cash cycle 100 93 85 80 83 80 72 73 67 68 65 61 60 60 52 40 20 0 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Turnover days 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 AR 43 58 78 72 57 58 59 50 48 48 59 58 I

  17. Slide 17: 3. Business Outlook

    3. Business Outlook We currently expect 3Q18 :  Revenue : between NT$74 billion ~ NT$78 billion, at a forecast exchange rate of 30.6 NT Dollars to 1 US Dollar  Gross profit margin : between 3.7% ~ 3.9%  Operating profit margin : between 1.9% ~ 2.1% 17

  18. Slide 18: 4. Recap of Recent Major Events

    4. Recap of Recent Major Events  WT set August 6 as ex-dividend date and August 31 as cash dividend issue date.  WT was ranked as 2017 APAC Best Performance Distributor from STMicroelectronics.  WT was ranked as 2017 APAC Best Distributor Partner from ON Semiconductor. 18

  19. Slide 19: Questions and Answers

    nswers

  20. Slide 20: Thank You!

    Thank You ! WT Microelectronics Co., Ltd. Website : www.wtmec.com 20

WT Microelectronics — Q2 2018 Earnings Presentation on 6ix